5 Reasons Why Businesses Should Switch to Cloud ERP
Businesses are continuously changing to keep up with modern innovations within their respective industries. The digital revolution coupled with the new demands of the market has transformed the way companies conduct their operations. Today, data—such as consumer info, stocks, website traffic—is important in determining the next course of action for an enterprise. Consequently, the tools that businesses use to gather and distribute data have changed as well, and ERP software is not exempt from this change.
ERP (enterprise resource planning) solutions have served as the backbone of many businesses, big and small. Traditionally, ERP systems are installed on-site, and for a time, it was the gold standard in implementing ERP. However, cloud technology paired with the dominance of mobile devices has changed this perception. Today, more businesses are leaning toward ERP on cloud and for a good reason. Here are some of them:
Affordable Implementation Costs
One of the primary reasons business owners switch to cloud ERP is capital. Legacy ERP systems require companies to pay for the software upfront, and ERP programs come with a hefty price tag. Moreover, companies also need to pay for extra hardware, full IT teams, and other implementation requirements to ensure that the system works properly.
In contrast, cloud ERP works as software-as-a-service, which means that the program is subscription-based. Companies pay a substantially smaller monthly fee to vendors, so they can continue using the program. The smaller price tag makes ERP more accessible to smaller companies that, more often than not, lack the capital to afford on-site systems. In this manner, ERP implementation becomes an ongoing operating cost rather than a one-time splurge.
Increased Collaboration Across Company Sectors
The goal of ERP systems is, in essence, enhanced connectivity, which will improve company operations. Traditional ERP systems are already accomplishing this, but cloud ERP takes it a step further. Since the system is accessed via the internet, communicating with remote workers/branches and sharing company information with authorized partners has become easier. This opens up numerous possibilities for companies to expand yet remain tightly connected in an increasingly global market.
Scalability for Growth and Expansion
Growing pains are an issue that many companies with on-premises ERP systems face. As they expand, they must also purchase more hardware or add more members to the IT team for the system to keep up with the company’s needs.
Meanwhile, scalability is not a big issue when using cloud ERP. Since the service is based online, companies can easily opt to increase the number of users, add data storage, or make use of other features that will help support the company’s growth. Conversely, they can also reduce these elements in case the company downsizes.
Third-Party Upgrades and Maintenance
ERP systems require maintenance to function properly, but not all companies have the capital to hire a team dedicated to it. With cloud ERP, the responsibility of maintaining the system and improving it falls on the vendor. They are in charge of developing upgrades and adding new features that will ensure that the system works smoothly and complies with the requirements of existing laws. As such, businesses can feel at ease knowing that their ERP system is up-to-date, and they allocate their resources on more profitable avenues.
Enhanced Security Measures and Backups
Cybersecurity is a hot topic nowadays, and for a good reason. Cases of hacking and data hostage have troubled several institutions, both private and public, and naturally, business owners can feel worried about having company information accessible online.
However, bear in mind that cloud solutions providers and experts consistently work hard to stay on top of security. Legitimate cloud-based ERP has safety measures, fail-safes, and backups that are comparable to the measures that banks have in place. Couple this with teaching employees about online safety, and companies can protect themselves more effectively from cyberattacks.
Indeed, there are many reasons for businesses to switch to cloud ERP. That said, another question lies in wait: which cloud ERP software should they get? There are plenty of cloud solutions on the market, all with different features at varying price points. To find the best match for your company, partner with a legitimate solutions provider like ANSI, and you can feel assured that you are getting the right ERP software at the right cost.
Contact ANSI today to learn more about the cloud ERP programs available to your company.
